Oilex has secured Indian approval to sell gas from its Cambay-73 well in the Cambay Field to the local market.
The 2C findings of a 2011 resource assessment revealed that the entire contract area would provide Oilex with 37.4 million barrels of oil and 222.6 billion cubic feet of gas.
The Cambay-73 vertical well produced from the Cambay Y zone at about one million standard cubic feet a day. The Cambay joint venture (JV), comprising Oilex, Gujarat State Petroleum Corporation and Niko Resources, will now develop the required production facilities for Cambay-73 and initially link the production to a low pressure pipeline grid servicing the local area.
Oilex said that bringing the Cambay-73 well back into production will help the ongoing development of the Cambay-77H well.
Oilex managing director Ron Miller said that as soon as the gas composition from Cambay-77H is confirmed to be similar to Cambay-73, the company will be in a good position to add to its production from Cambay Field.
"Importantly, Cambay-73 and Cambay-77H will also provide significant deliverability data for the Y zone which can be used in upgrading a portion of the independently certified contingent resources into reserves," Miller added.
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By GlobalData"The contracted price remains commercial-in-confidence and was determined by a competitive bidding process. This reassessment will enable Oilex to consider delivery of pipeline quality gas to the high pressure grid located approximately 7km from this region of the field."
In July 2005, Oilex signed an agreement with Gujarat State Petroleum Corporation and Niko Resources to acquire a 30% participating interest in the production sharing contract (PSC) covering the Cambay Field. Oilex acquired an additional 15% stake from Niko and now holds a 45% participating interest in the Cambay PSC.
